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Impact of Removal of City Gas Subsidies on Chinese Urban Residents

The current cost-plus natural gas pricing mechanism makes the gas price too low, resulting in a lot of con- sumer-side subsidies and over-consumed natural gas. This paper applies the price-gap approach and input-output analysis technology to quantitatively analyze both the direct and indirect effect...

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Bibliographic Details
Published in:Transactions of Tianjin University 2012-08, Vol.18 (4), p.309-314
Main Author: 廖华 朱治双 王璐
Format: Article
Language:English
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Summary:The current cost-plus natural gas pricing mechanism makes the gas price too low, resulting in a lot of con- sumer-side subsidies and over-consumed natural gas. This paper applies the price-gap approach and input-output analysis technology to quantitatively analyze both the direct and indirect effects on urban residents under the condition that natural gas subsidies are cancelled in China in 2007. It is shown that the gas price will increase by 33.3%--41.6%, and the residential consumption expenditure by 0.26%--0.33%. The low-income groups are mostly affected, so differ- ent subsidies should be implemented to make subsidies more efficient.
ISSN:1006-4982
1995-8196
DOI:10.1007/s12209-012-1944-x